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Sunday, December 9, 2012

NY Times: Many Families Earning >$250,000 Would Escape Obama's Tax Hike

New York Times:  In Obama’s Plan to Tax Rich, $250,000 Figure May Mislead:

President Obama’s insistence that marginal tax rates rise for families making more than $250,000 has convinced millions of affluent Americans that they are likely to be writing larger checks to the government next year. 

But many of those families have no reason to fret.

A close look at the president’s plan shows that a large majority of families making up to $300,000 — as well as hundreds of thousands of families with even larger incomes — would not pay taxes at a higher marginal rate.

Because the complexity of the tax code makes it difficult to draw clean lines, they are the beneficiaries of choices the administration has made to ensure that families earning less than $250,000 do not pay higher rates.

New York Times: When $250,000 Isn’t Actually $250,000:

[T]here are lot of couples earning more than $250,000 whose tax liability would not be affected. There are two main reasons: inflation, and the very narrow way income is defined in this proposal.

(Hat Tip: Mike Talbert.)

http://taxprof.typepad.com/taxprof_blog/2012/12/ny-times--4.html

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Comments

ObamaCare's new $2500 cap on Flexible Spending Accounts will increase taxes on millions of middle class families starting in January. Parents of disabled children who have made heavy use of FSA's for medical expenses will be hit very hard.

Posted by: AMTbuff | Dec 9, 2012 2:11:38 PM